You’ve got a buyer lined up for your rental property in Michigan. The next question? What happens to the tenant’s lease when you hand over the keys?
If you picture your tenant packing up on closing day, you may be in for a surprise. Here’s how the law works, what buyers expect, and how to close with no loose ends when you sell your rental property in Michigan.
Does The Tenant’s Lease Disappear When You Sell?
Not at all. Michigan law keeps your tenant lease glued to the property, even after you cash your check. The new owner steps right into your shoes and becomes the landlord. Your lease stays in place—same rent, same rules, same end date—unless your tenant and the new owner agree to change it.
Landlord Tip:
Selling your house never erases a valid tenant lease.
How The Sale Impacts Your Tenant Lease
Let’s walk through what you (and your tenant) should expect:
- Your buyer gets a copy of the lease before closing.
- The security deposit travels with the property and must be handed over to the new owner.
- Rent payments shift to the buyer after the sale.
- The tenant’s rights don’t get reset. They still call your property home.
Thinking of keeping your tenant in the loop? Smart move. Telling them about the sale upfront makes for fewer awkward surprises.
Month-to-Month vs. Fixed-Term: What’s The Difference?
| Lease Type | What Happens After Sale |
| Fixed-term lease: | The buyer must honor all terms until the lease ends. |
| Month-to-month: | The buyer can end the lease but must give proper notice. |
In both cases, the tenant can’t just be kicked out overnight. The new owner must follow Michigan’s legal process.
Want To Sell Your House As Is With Tenants?
Selling your rental house as is, with tenants, is normal for many Michigan cash buyers and investors.
Here’s what you do:
- Be clear with buyers about the tenant lease terms.
- Share copies of all lease agreements and records.
- Make sure your contract spells out what the buyer’s taking on.
Buyers who specialize in cash home sales or want to sell their house fast usually prefer rental homes with tenants in place. It saves them the work of finding renters and saves you the trouble of moving people out.
What Are Your Tenant’s Rights?
Your tenant gets to stay under the same lease terms, no matter who owns the place. The new owner can’t raise the rent, change the rules, or end the lease without following Michigan law. If the lease is month-to-month, proper notice (usually 30 days) is required. A fixed-term lease? The new owner is locked in until it ends.
Bottom line:
The lease protects your tenant, and the law keeps it in force even after you sell.
Transferring Deposits And Lease Documents: What To Do
Selling your house for cash in Michigan? Here’s your checklist:
- Gather every lease and addendum.
- Write up the total security deposit held.
- Transfer the deposit to your buyer at closing—get it in writing.
- Tell your tenant in writing who their new landlord is and how to pay rent.
Once you do this, you’re clear of future obligations.
Can You Ask A Tenant To Move Before Selling?
You can only ask a tenant to leave if the lease allows it or if you follow the legal process. Fixed-term lease? You’re out of luck unless the tenant agrees. Month-to-month? You can give written notice (at least 30 days in Michigan), but you can’t just show up with boxes.
If your goal is a quick, clean sale, it’s usually easier to sell the rental property in Michigan with your tenant and lease in place.
Why Cash Home Sales Make This Easier
Cash buyers want smooth, fast deals. They’re used to buying rental houses with leases and tenants. No agent commissions, no repairs, no drama, just a simple transfer of money, lease, and keys. If you want to sell your house for cash or sell your house fast, work with buyers who know Michigan rental property laws and don’t mind existing tenants.
Quick Reference:
- You keep the lease and security deposit paperwork organized.
- Your buyer gets rental income starting on day one.
- Everyone knows the terms—no last-minute surprises.
What Happens With Unpaid Rent Or Lease Problems?
Unpaid rent, lease violations, or damage don’t vanish at closing. The buyer takes over the lease, so these issues become their responsibility.
Want a clean break? Try to settle problems with your tenant before selling your property for cash. If you’re selling as is, let your buyer know about any issues. Most cash buyers are ready for anything but want to know the facts before closing.
Before And After Closing: Your Move-Out Map
Before closing:
- Collect every lease document.
- Write a transfer note for the security deposit.
- Give your tenant written notice about the sale.
After closing:
- The new owner handles rent, repairs, and all lease matters.
- You’re free from landlord duties and can move on.
Sell Your Rental Property In Kalamazoo, MI
Looking to sell your rental property in Kalamazoo, MI—even with a tenant lease? Ryan Buys Houses buys rental houses for cash, honors every valid lease, and handles the paperwork so you don’t have to.
Fill out our online form or call (269) 775-4095 for a fast, no-obligation cash offer. Move on your timeline, tenants and all.